Decentralized derivatives exchange dYdX is considering transitioning its governance token to become the native asset of the upcoming dYdX Chain. The decision will be made through a governance vote in the future, depending on the community’s decision. dYdX, founded in 2018, is currently the largest decentralized derivatives exchange with a trading volume of nearly $600 million in the last 24 hours.
Key points:
1. Potential functions of the native asset are being evaluated, including staking, governance, and rewards.
2. The dYdX community will have a significant say in the decision-making process.
3. If approved through an on-chain vote, the token will migrate from being an ERC-20 token on Ethereum to its own Cosmos SDK-based network.
4. The dYdX Chain is set to debut with the release of version 4 later this year.
5. The team behind dYdX is currently testing the dYdX Chain.
Hot Take: dYdX’s consideration to transition its governance token to become the native asset of the dYdX Chain shows the exchange’s commitment to decentralization and community involvement. This move could enhance the functionality of the token and provide more opportunities for token holders to participate in the governance and growth of the platform.
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